- On Friday, USD/CAD jumped to a new yearly high of 1.36476.
- USDCNH fell in a state of consolidation for the fourth day.
USDCAD chart analysis
On Friday, USD/CAD jumped to a new yearly high of 1.36476. This was followed by a pullback and a drop below 1.36000 for the rest of the day. Yesterday, the dollar tried to start a new upward consolidation, but it stopped at the 0.36175 level. From there, we are back on the downside and sliding down to the 1.35700 level this morning. Here, we encounter the 200 EMA, which stops the decline and keeps us above.
With a break below, we are heading for a new weekly low thus confirming the bearish momentum. Possible lower targets are 1.35500 and 1.35400 levels. We need positive consolidation and a move above 1.35850 for a bullish option. Therefore, we will move beyond the previous consolidation and we can expect further growth and a move to a more defined uptrend. Possible higher targets are 1.36000 and 1.36200 levels.
USDCNH chart analysis
USDCNH fell in a state of consolidation for the fourth day. We are under more pressure this week as the move is taking place below the EMA200. This morning brought us to a new weekly low at 7.24024. We were able to get support at this level and recover to the 7.24450 level. Here, we are facing the EMA 50 and need to break above that resistance to start further recovery.
Possible higher targets are 7.24800 and 7.25000 levels. In the area around 7.24800, we will struggle again with the EMA200. If we move back to the downside, we will look at the 7.24000 support level. A new test in that area will only increase pressure on the USDCNH pair to drop below there and form a new low. Possible lower targets are 7.23800 and 7.23600 levels.
